ACADIA Pharmaceuticals(ACAD) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - ACADIA Pharmaceuticals reported total net sales of $242 million for Q2 2024, representing a 46% year-over-year increase [47] - DAYBUE net product sales reached $84.6 million, up from $23.2 million in Q2 2023, marking an 11% sequential growth [47] - NUPLAZID net product sales were $157.4 million, reflecting an 11% increase compared to the same quarter last year [47] Business Line Data and Key Metrics Changes - DAYBUE experienced a sequential increase in active patients, reaching 900, which is consistent with the end of 2023 [8][9] - NUPLAZID's sales growth was supported by a stabilization in the Parkinson's disease psychosis market and positive real-world evidence studies [10][27] - The company adjusted its guidance for DAYBUE sales down to a range of $340 to $370 million for the year, while increasing NUPLAZID's guidance to $590 to $610 million [50][51] Market Data and Key Metrics Changes - The awareness of hallucinations and delusions among patients and caregivers has significantly decreased, creating an opportunity for ACADIA to raise awareness through targeted campaigns [31][34] - Approximately 30% of diagnosed Rett syndrome patients in the U.S. have initiated DAYBUE treatment, indicating a substantial market opportunity for growth [18][22] Company Strategy and Development Direction - ACADIA is focused on expanding its commercial franchises, particularly DAYBUE and NUPLAZID, while also advancing its pipeline programs, including those for Prader-Willi syndrome and Alzheimer's disease psychosis [7][12] - The company plans to initiate a targeted campaign to address the awareness gap regarding hallucinations and delusions in Parkinson's disease patients [11][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to fund future growth with over $500 million in cash and no debt [8] - The management team acknowledged that while progress is being made, the rate of new patient starts for DAYBUE has been slower than anticipated, leading to a cautious outlook for the second half of the year [9][50] Other Important Information - R&D expenses increased to $76.2 million in Q2 2024, primarily due to costs associated with pipeline programs [48] - SG&A expenses rose to $117.1 million, driven by new consumer activation programs and marketing costs [49] Q&A Session Summary Question: Discontinuation and New Start Rates - The management noted that discontinuation rates are consistent between Centers of Excellence (COEs) and community practices, with a higher penetration of prescriptions expected from community practices over time [56][57] Question: DAYBUE Guidance Confidence - Management indicated that they are tracking towards the lower half of the revised guidance range for DAYBUE, with potential to reach the higher end based on ongoing initiatives [60][62] Question: Impact of Summer Months on DAYBUE - Management acknowledged that summer months typically see some patient cycling, but they expect new patient starts to progress as families return from vacations [65][66] Question: Breakdown of Untreated Patients - Management clarified that the remaining 70% of diagnosed patients not on DAYBUE are primarily in the younger age range, with physicians expecting to increase prescriptions significantly in the coming years [70][72]